A consumer forum has upheld dual-pricing of packaged drinking water and beverages citing observations of the Supreme Court.
The forum was dealing with a complaint filed by Vijay Gopal, 28, a resident of Tarnaka, who stated that the restaurant chain, KFC, was selling a one-litre water bottle of Aquafina brand and Frooti, a beverage, at prices higher than the maximum retail price (MRP).
The complainant stated that ‘for sale only at selected channels’ was printed on these products.
He said while an Aquafina and Frooti bottles were available in the market for ₹20 and ₹35 respectively, the restaurant was selling them at ₹40 and ₹70.
In their response, the KFC said it has not indulged in any unfair practices and was complying with the rules of the Legal Metrology Act of 2009.
Parle Agro Pvt Limited, which owns the Frooti brand, said it has complied with the 2015 judgement of the National Consumer Disputes Redressal Commission which states that dual-pricing is in accordance with the existing laws. It also said printing ‘for sale only at selected channels’ is not misleading.
Pepsico India Holdings Pvt Limited, which owns Aquafina brand, said, “In the absence of any law prohibiting dual-pricing, a trader/manufacturer is free to fix different MRP for even the same product”.
SC judgment
The forum relied on a Supreme Court judgment that found no illegality in dual-pricing. “In view of the law laid down by the Supreme Court that there can be dual-pricing of the very same product to be sold at different outlets, the sale of water bottle and Frooti to the complainant for ₹40 and ₹70 at KFC at Himayat Nagar branch as against ₹20 and ₹35 sold in the general market cannot be said to be illegal,” the forum said.
Reacting to the consumer forum’s order, the Department of Legal Metrology, which recently issued orders against dual-pricing at multiplexes, clarified that dual-pricing is permissible only in restaurants.
Speaking to The Hindu, Controller of Legal Metrology Akun Sabharwal said, “We are treating food outlets in multiplexes as shops and not restaurants. Dual-pricing is permissible in restaurants only. Therefore, dual-pricing by shops which sell food items in multiplexes is not permissible”.